FBT Calculation

 Jane is the owner and director of Clean Dogs Pty Ltd (‘CDPL’), which offers mobile dog washing and dog grooming services. CDPL operates out of an office in Jane’s house in Rockdale, which was created by the conversion of an attic above the garage on the property. The office occupies 10% of the entire floor space of the house. The running (i.e., electricity, water and gas, etc) and occupancy expenses (i.e., mortgage) for the 2020 FBT year incurred in respect of Jane’s entire house were $30,000. These were paid by CDPL. Jane’s daughter, Lucy, is 20 years old and still lives at home with her mother. Jane also works as a receptionist for CDPL 2 days a week whilst also completing a business course at university. Lucy neither pays rent nor receives any income for her work as a receptionist. CDPL, however, pays her tuition fees of $8,400 per year for the business course. On 1 October 2019, CDPL purchased a new fuel-efficient van for $85,000 with a load capacity of 3 tonnes. The van, which is fitted with dog washing and grooming equipment, is used by Jane to travel to customers’ houses for the purpose of washing and grooming dogs kept there. The van is garaged at Jane’s house when not in use. In January 2020, when Jane’s car was in for a service, Jane used the van to travel to South Australia for the purposes of a holiday. The total kilometres travelled on that occasion were 3000 Kms. During the 2020 FBT year, the total number of kilometers travelled in the van was 10,000 kms. Jane estimated that had she hired a car instead of using the van to travel to South Australia it would have cost her around $2,000. The particulars for the year regarding the van and for which invoices are retained, including a log book, include: Stamp duty $320 Registration & Insurance $1000 Petrol and oil $1,900 Repairs & Maintenance $200 Total kilometers travelled (as per log book) 10,000 kms Business kilometres travelled 7,000 kms Jane’s contribution for petrol and oil $880 Required: Advise about the fringe benefits tax liability, if any, for the current FBT tax year. Your answer should show relevant calculations and be clearly supported by references to relevant legislation, case law or tax rulings. In addition, explain who must pay the tax calculated.